DirecTV to re-evaulate WWE’s PPV business after launch of Network
While WWE fans are excited about the WWE Network, one company isn’t because it will effect their revenue. That company is DirecTV, one of the PPV distributors for WWE.
A typical deal between WWE and distributors is usually 50/50 according to a report by the Los Angeles Times. With the Network in place that means that companies such as DirecTV will lose on that 50% deal if a subscriber switches to WWE Network.
“Clearly we need to quickly re-evaluate the economics and viability of their business with us, as it now appears the WWE feels they do not need their PPV distributors,” DirecTV said in a statement.
The statement added that the audience for PPVs have been at a steady decline and the Network will surely accelerate the trend.
WWE quickly replied through Vince McMahon who said that DirecTV would be foolish not to carry their pay-per-views anymore as they will still make money from those who do not subscribe to the WWE Network.